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What cyber insurance claims tell us about cyber risk today

Posted on Aug 28, 2021
What cyber insurance claims tell us about cyber risk today

This year’s Global Risks Report from the World Economic forum identified cybersecurity as the biggest short-term economic risk society faces. The report has a somewhat patchy record in predicting the biggest threats on the horizon, but with cyberattacks surging in recent years, this is surely one that is beyond dispute.

“Misinformation, cyberattacks, targeted strikes and resource grabs are on the rise,” the report says. “States and non-state actors alike will likely engage in more dangerous cyberattacks, and these attacks will become more sophisticated.”

Given this growth, it’s perhaps no surprise that the cyber insurance market is predicted to reach $22.5 billion by 2030 as organizations seek to limit their exposure to the growing risk of cyberattacks. As the sector becomes larger, however, the claims data also provides us with some interesting insights into the nature of cybersecurity itself.

“If the events of the past year are any indication, cyber risk is set to become the defining risk of our age,” says the Cyber Insurance Provider Coalition. “With the escalation of ransomware and other cybercrimes impacting everything from critical infrastructure to the corner store, one thing is clear: addressing cyber risk matters for everyone.”

Firstly, there has been significant growth in cybercrime in the first six months of 2021, with the biggest culprit being business email compromise (BEC) incidents, which are up 51% compared to the same period last year. The report reminds us that whereas sexier technologies may get a lot of press, email remains the dominant attack surface for the majority of organizations. The next most common form of attack was funds transfer fraud (FTF), which grew 28% year on year.

Given the publicity attracted by the likes of the REvil attack on Acer in March, it’s perhaps also no surprise that ransomware attacks have become more popular again after there was a slight dip in numbers during the second half of 2020. Perhaps most importantly, not only are the number of ransomware attacks rising but also the size of the ransoms demanded, with the average demand growing by 170% to $1.2 million. The authors believe this is largely because the business impact of ransomware has grown, which has emboldened criminals to demand higher payouts.

Full article on https://cybernews.com/security/what-cyber-insurance-claims-tell-us-about-cyber-risk-today/

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